The EBRD is providing a senior loan of up to USD 60 million to support the development and operation of the first phase of the Ayla Village, part of the wider Ayla Oasis regeneration project, a masterplan-led regeneration located in the immediate vicinity of the border between Jordan and Israel on the western edge of the city of Aqaba (the "Project").

The Ayla Oasis regeneration project was initiated through a private-public partnership between the Aqaba Special Economic Zone Authority ("ASEZA") and the private investors, ASTRA Group, with the ultimate goal of regenerating and repositioning Aqaba into a prime tourist destination on the Red Sea. The Project is aiming to develop a mix of commercial and residential infrastructure that will serve tourists as well as the needs of the local population.

The Project has been designed with the aim of taking sustainability to the next level, including a cutting edge design which allows for numerous phases of the project to be powered by solar energy produced on site, an innovative approach to water efficiency and grey water recycling, and the implementation of best international practices in construction and asset management. The proceeds of the loan will be used to finance the first phase of the Ayla Village comprising of the public promenade and Souk area, retail and entertainment space that will serve as the vibrant social hub of the Project, as well as two hotels and residential units which will be offered for rent and aimed at Jordanian and international tourists visiting Aqaba. Ayla Village is designed as an innovative new meeting place for visitors and Aqaba residents in the heart of the regeneration scheme and will operate as a footfall generator, crucial in producing economically, environmentally and socially sustainable results for Aqaba as a new regional tourist hub. The Project is expected to be completed in 2018.

Project Objectives

The objectives of the Project are to:

Support the development of Aqaba into a leading tourist destination and create synergies with the world heritage sites of Petra and Wadi Rum, which are within a two hour drive, thus extending the average length of stay of tourists in Jordan.

Help provide access to training and offer career placement opportunities in the hospitality sector to youth, including young women, in the area.

Support the use of sustainable climate resilience technologies in the built environment and the transfer of skills and know-how to the Jordanian workforce, both during construction and, as envisaged, during the operational stages of the Project.

Transition Impact

The Project's transition impact will most likely stem from the following:

Skills transfer to achieve systemic inclusion through improved access to training and work based learning opportunities in the hospitality sector in Jordan.

Setting standards, mainly through demonstration of advanced building sustainability and climate resilience solutions and techniques applied in the Project. The Project, designed by Arcadia and EDSA, takes into consideration the climate vulnerability of the Aqaba area and encompasses a number of climate resilient and building sustainability techniques.

Client Information

OASIS-33 MIXED USE DEVELOPMENT COMPANY

The Company is directly owned by Ayla Oasis Development Company, a private company incorporated under the laws of Jordan in 2003 to undertake the development, construction and operation of the overall Ayla Oasis project. The Company is ultimately owned by the ASTRA Group and the Aqaba Special Economic Zone Authority.

EBRD Finance Summary

USD 60,000,000.00

Total Project Cost

USD 264,000,000.00

Environmental and Social Summary

Category B in accordance with 2014 Environmental and Social Policy. This means that the Project's environmental and social issues are readily identified and addressed by adequate mitigation measures.

Due diligence included reviews of the EIA documentation applied for the larger development in accordance with national law in which the Project is part of as well as a site visit by EBRD environmental staff. It showed that environmental and social impacts of the Project are site specific. Infrastructure works including solar panel installation for the larger development have been completed. The larger development including the Project has been carried out to date in accordance with national law as well as good international practice including adequate Environmental Management Plan.

Sea water quality is monitored and recorded on regular basis and waste water from the development is treated by the municipal waste water treatment plant. Construction impacts are also monitored.

The development has also taken pro-active measures such as collaboration with the UNDP for coral reef protection and ecotourism and with the Royal Society for the Conservation of Nature for the Aqaba Bird Observatory Centre.

A specific Environmental and Social Action Plan has been developed to ensure the continuation of the Environmental Management Plan and above mentioned pro-active measures, construction worker health and safety management and stakeholder engagement.

The Company is required to implement the Project in compliance with EBRD Performance Requirements.

The Bank will monitor the Project by reviewing annual environmental and social reports as well as site visits.

Technical Cooperation

The Bank intends to provide technical assistance for the development of a youth inclusion model and national and regional policy dialogue to promote inclusive employment practices in tourism sector in Jordan.

Company Contact Information

Hala Araj, Director of Technical Services

haraj@ayla.com.jo

+962 6 461 2324

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